Integrated Business solutions with CRM

at GST Inc.
Agenda

Background Problem
01 Page 1-2
02 Page 3

Alternatives & Process and

03 Recommendation 04 Financial
Page 4-6 Page 7-8
Background-I
GST Inc is a major fortune100 telecommunication company with the objective of increasing the customer acquisition in the dropping
telecommunication industry.
Company

• GST is a telecommunication company with 13M Customers across eleven states of

USA.
• The major communication services provided by the company includes Broadband
services, internet services, voice transmission capabilities, etc.
• The core belief of the company lies in committing to product innovation and
personalized customer services to address unique customer needs.
• Company’s goal is to grow the customer base by 5% annually by new customer
acquisition and increase sales revenue by maximizing the return on investment.

1.
Background-II
Currently the company is running on the operational CRM model which has helped them in organizing the business efficiently.

Current Business Model

1.GST is currently using Enterprise data warehouse (EDW) model which has proven
to be successful in terms of return of investment.

2.GST has invested 3M on the operational CRM model, apart from many other
benefits the model offers, it has majorly helped them to keep the call center data
updated and added a new tool for the sales force automation.

3.The Return on investment metrics for the implemented CRM model was never
established or monitored, hence the CRM model was lacking the information about
the payback of the investment.

2.
Problem
With the Increase in churn rate in the telecommunication industry, GST should focus on Customer retention instead of customer acquisition.

Business Problems

1.The Existing CRM Implementations have not helped the data requirements of the
marketing teams.

2.With the Growing business, all the decision makers of the company should have a
single view of the enterprise.

3.The churn rate of the customers in the industry is high and the company is focusing on
the new customer acquisition. This will not be proved helpful for the company as The
higher customer churn environment, the company should focus on customer retention.

Key Problem:

How to Implement customer retention goals with the help of CRM tools?
3.
Alternatives
The multiple alternatives available for the company to grow customer retention, leans the business to opt for the CRM analytics.
01
Increase Cross-selling
upselling
GST Should focus on cross
selling and up-selling to high
value customers.
Cross selling: to sell a different
product to an existing customer
Upselling: to sell a more
expensive product to an existing
customer.
4.
02 03 04
Implement retention program Improve the Marketing insights
Reach out to the Niche Markets
related to consumer habits for campaigns.
Marketing team needed to identify
Company should focus on
Company should focus on which customers to be targeted
retaining the existing customers
reaching out to the niche markets and the most profitable mix of
to have a loyal customer base product offerings for them
With the help of CRM tools
because customer retention is
company should analyse the
more profitable than new Company should focus on
consumer habits and create
customer acquisition’ and it is improving the marketing insights
retention program based on these.
easier to retain the niche market. to gather the information required
to serve the customers best.
Implement CRM
analytics
Difference Between Operational CRM and Analytical CRM
The below difference in both the tools make it clear that these are interrelated.
Operational CRM
• Operational CRM helps in
adding automation to the
business.
• The entire sales, marketing,
even customer service can
be automated with the help
of operational CRM
• It helps in collect and
managing customer
relationship date through
touch points
5
Analytical CRM
.
• Analytical CRM provide insights
into the customer issues,
customer relationships, etc.
VS • Analytical CRM provides
insightful data for the Marketing
team
• It helps in Analyzing customer
detailed information
• Analytical CRM helps in
Incorporating Predictive
capabilities and Proactive
services.
The Power of CRM analytics

Once the Analytical CRM tool is added to the already existing EDW and operational CRM tool, the business will reach its goals.

Implement CRM
analytics
Sample of Analytical CRM finding

Teradata’s Analytical CRM focus: Uncover Business metrics

Increase the ability to target Analytical CRM helps fetch data related to
customers who like to spend. the churn rate, take rate and lift rate.

Implement Change in Customer Understand the customers and target accordingly

Models: Focus on-Married couples
Analytical CRM helps in getting customer
with 2 phones, laptop, Tablet for the insights which is the core requirement for
Children will spend more any business.

Result of change: average

customer spending could increase Improve the EDW efficiencies
by 10-20% EDW bridges the gap between operational
and analytical CRM for great business
insights

6
 Proposed CRM Solution For GST

7
 (000') (000') (000')
Customer Base 13000 13650 14332
5% 5%
Campaign take rate 3% 8% 8%
5%

avergae Spending per customer monthly $ 42.00 $ 50.40 $ 60.40

change 20% 20%

yearly $ 504.00 $ 602 $ 705.00

Total Sales $ 6,552,000.00 $ 8,217,300.00 $ 10,104,060.00

Variable cost 1,676,300,000.00 3,830,613,696.00 4,654,583,257.00

Contribution margin $ (1,669,748,000.00) $ (3,822,396,396.00) $ (4,644,479,197.00)

Fixed cost
Hardware 1500000 180000 180000
software 2500000 450000 450000
Professional Service 1000000 200000 200000

Total Fixed 5000000 830000 830000

operating cash flow $ (1,674,748,000.00) $ (3,823,226,396.00) $ (4,645,309,197.00)

Investment 3000000 3000000 3000000

Net cash flow $ (1,677,748,000.00) $ (3,826,226,396.00) $ (4,648,309,197.00)